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DBS net profit up 8% for Q2

DBS Group Holdings' net profit including one-time items went up 8 per cent to S$1.13 billion for its second quarter compared to a year ago, as continued business momentum was offset by lower net interest margin, trading income and gains on investment securities.

PHOTO: REUTERS

DBS Group Holdings' net profit including one-time items went up 8 per cent to S$1.13 billion for its second quarter compared to a year ago, as continued business momentum was offset by lower net interest margin, trading income and gains on investment securities.

Total income remained flat at S$2.92 billion.

Net interest income went up 3 per cent to S$1.89 billion while net interest margins - the difference between interest income generated and the amount of interest paid to lenders - was 1.74 per cent, down from 1.87 per cent due to lower Singapore dollar interest rates.

Loans rose 5 per cent to S$302.97 billion in constant currency a year ago from broadbased growth.

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Net fee income rose one per cent year-on-year to S$636 million, led by an increase in annuity fee income streams from a double-digit growth in wealth management, but was offset by a decline in investment banking and loan-related fees.

Non-performing assets rose marginally from the previous quarter to S$4.85 billion as non-performing loan formation was offset by write-offs and recoveries. The non-performing loan rate went up by 1.5 per cent.

For the first half of 2017, an interim one-tier tax-exempt dividend of 33 Singapore cents for each ordinary share was declared, up 10 per cent from the 30 Singapore cents declared for first half 2016.